What is Presumptive Tax?
This is a tax payable by a resident person whose turnover from business does not exceed Kshs. 5 million during a year of income.
Who should pay presumptive tax?
Persons liable to pay a Presumptive Tax shall be –
The Presumptive Tax regime will not apply to:
What is the rate for presumptive tax?
The rate of presumptive tax shall be amount equal to 15% of the amount payable for a business permit or trade license issued by a County Government. This shall be a final tax.
When is presumptive tax due?
The due date for payment of the tax shall be at the time of payment for the business permit or trade license or renewal of the same.
Filing of Returns
The Taxpayers under Presumptive Tax Regime are not required to file a tax return on the income from the business that qualifies under presumptive tax regime.
What is the Penalty for late payment of Presumptive Tax?
5% of the tax due and a late payment of interest 1% per month as outlined in the Tax Procedures Act, 2015.
Note: Presumptive Tax is a final tax. This means, you are not required to declare the tax in your Annual Tax Return.
Would you like to know more about tax and what’s expected of you? Contact us 0705507660